The Business Litigation Blog

Bank of America Under Fire for Fair Housing Violations

Wednesday, October 03, 2012

An undercover investigation allegedly revealed that the way
financial giant Bank of America maintains and markets foreclosed
homes is different in White neighborhoods than in African-American
and Latino neighborhoods. The company now faces allegations that it
violated the Fair Housing law that applies to housing and
housing-related activities, which include the maintenance,
appraisal, listing, marketing and selling of homes.

The investigation of 373 foreclosed homes in eight metropolitan
areas owned, serviced or managed by Bank of America prompted a
complaint that was filed September 25, 2012 with the U.S.
Department of Housing and Urban Development. The complaint sparked
an undercover investigation that allegedly found that Bank of
America engaged in a systematic practice of maintaining the
bank-owned properties in a ‘state of disrepair’ in minority
communities while marketing and maintaining properties in
predominantly white communities was far superior.

This is not the first time discrimination allegations have been
brought upon financial giants; NFHA filed HUD complaints against
Wells Fargo and U.S. Bancorp in recent years.

To see additional statistics or to read the HUD administrative
complaint against Bank of America click here.
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